lunedì 17 ottobre 2011

Pricing in Italy: what discount means to Italians

Next post Monday October 24th

Pricing in Italy can be very tough! We are a Mediterranian people after all and we do love to bargain. You have to consider this is you want to make business with Italy.
Price is not a rational value of the product, is an emotional way to connect with people. Be prepared to negotiate, every time, everywhere.  Unless your brand is Apple.
We love discount, although we do understand very often it’s not a true reduction, but just a sort of sales game.
We invented the Commedia dell’Arte some centuries ago and we love to play parts: the client must fight for a price cut and she/he needs to win one, it’s a question of honor!
We do not feel offended if you raise you price so that you can cut it and provide a discount. It’s a game, you just have to know how to play it.
Do give it away immediately, start claiming that you will be spoilt by the discount and so we can argue for some minutes about. Then concede it and ask for something in reward.
It works.
Maybe I have depicted it in a romantic way, but believe me you have to consider our latin attitude toward prices if you want to be profitable.
Two little samples:
1)   the company I used to work as a marketing manager provided a discount on listed prices of about 70% to OEMs: can you believe it?
2)   Have you ever seen on the back of your hotel room door the listed price for your room? Did you agree a night rate of 130 € breakfast included? Now, why you can read that the list price without breakfast for one night is 380€?
That’s Italy.
Do you need to know more about?

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